The Iran Ports and Maritime Organisation (PMO) and the Ministry of Transport of Uzbekistan (MOT) have entered into a memorandum of understanding (MOU) on future investments by Uzbekistan's private sector in the Iranian commercial port of Shahid Rajaee.
Under the MOU, the PMO and the MOT will study the viability of developing a new dedicated terminal and logistics centre at Shahid Rajaee.
The parties said they would also craft operational frameworks and satisfy regulatory clearance requirements prior to the commencement of any infrastructure projects at the port, which lies along the north shores of the Strait of Hormuz.
The signing of the MOU came less than two months after the Port of Shahid Rajaee was subjected to an explosion that left over 70 people dead and more than 1,000 injured.
Local officials have stated that the explosion resulted in economic losses amounting to the equivalent of US$4 billion, or around two per cent of Iran's GDP.
Shahid Rajaee is regarded as one of Iran's main maritime hubs, handling approximately 60 per cent of seaborne trade and being responsible for 53 per cent of cargo loading and unloading activities.
An earlier academic study had warned that any disruption at such a facility would have significant long-term consequences on Iran's economy, as the country relies on its ports for facilitating 70 per cent of its imports and 30 per cent of non-oil exports.
The same study showed that shutting down Shahid Rajaee Port for 90 days would impact domestic supply chains in industries such as chemicals and automotive production, though projected losses could not be estimated.
